Swirlpool, Inc. has found that its cost of common equity is 15 percent, and its cost of debt is 9 percent. The firm is financed with 70 percent common shares and 30 percent debt. What is the after-tax weighted average cost of capital for Swirlpool, if it is subject to a 35 percent marginal tax rate? Access Excel sheet here O None of the Above O 12.72% 13.20 % 11.45% O 12.26%

Swirlpool, Inc. has found that its cost of common equity is 15 percent, and its cost of debt is 9 percent. The firm is financed with 70 percent common shares and 30 percent debt. What is the after-tax weighted average cost of capital for Swirlpool, if it is subject to a 35 percent marginal tax rate? Access Excel sheet here O None of the Above O 12.72% 13.20 % 11.45% O 12.26%

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 11EP

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